In 1995, Chrysler got 10 years worth of tax breaks to move its Mopar parts distribution center from Solon to Streetsboro.
Those tax breaks ran out last year- and this year Chrysler is closing the distribution center.
Man, I would be PISSED if I was Streetsboro.
I’d get together with some top Streetsboro lawyers- and make sure the headlines read:? “Streetsboro to Chrysler: Give Us Back Our Tax Breaks, Bitches!”
Instead, the Mayor and Rep Tim Ryan both said they will help retrain or relocate the soon-to-be-unemployed workers.? The headline read: “Streetsboro says it can weather closing”
Not only is this a seriously wimpy response, it’s also a meaningless gesture.
The employees are not the ones that will suffer from this plant closing- the city will.
The 100 workers losing their jobs are going to get 95% of their salary and full health benefits for the next two years.? And they have until December to get their resumes up to speed.
The city, on the other hand, ends up with a big empty building- and no tax revenue.
Anyway- while cities have continued to make the same mistakes ( e.g. In 2000, Solon offered Chrysler MORE tax breaks to move a different facility BACK to their town!) the state seems to have taken at least part of this lesson to heart.
Ohio is still offering companies tax breaks to move here, but now we are requiring them to maintain operations long after their tax breaks run out.
In the most recent example, the Ohio Tax Credit Authority is giving Techtronic a 65 percent tax break for 10 years- but requiring the company to maintain operations for at least 20 years.
That’s a good start, I suppose.
But the Ohio Tax Credit Authority is a 6-year old program started by the previous administration.? It has granted similiar tax breaks to tons of other companies (Kroger, Progressive, Sumco Phoenix Corp, Amquip Corp, Dayton Technologies Inc., etc.)
The OTCA is part of Lee Fisher’s Department of Development.
So I guess my question to Lee is:
Got any NEW ideas?